Corporate Social and Environmental Performance and Their Relation to Financial Performance and Institutional Ownership: Empirical Evidence on Canadian Firms

Posted: 25 May 2002

See all articles by Lois Mahoney

Lois Mahoney

University of Central Florida - Kenneth G. Dixon School of Accounting

Robin W. Roberts

University of Central Florida - Kenneth G. Dixon School of Accounting

Date Written: Undated

Abstract

Social and environmental accounting issues became a topic of both academic and practitioner research approximately 20 years ago. Since that initial surge of interest, however, a relatively modest number of academic and practitioner studies have been performed. Recently, national governments, corporations, professional accounting associations, and professional services firms are beginning to show a strong, renewed interest in corporate social responsibility, performance and reporting, stressing a perceived relation between social and environmental performance and measures of firm success.

This study tests empirically the relation of social and environmental performance to financial performance and institutional ownership. Utilizing four years of panel data for a sample of Canadian firms, we find a significant and positive relationship between a firm's environmental performance and its financial performance. In addition, our findings indicate a significant, positive relationship between a firm's social performance and the number of institutions owning its shares. These results partially support arguments that corporate social and environmental performance is positively related to firm success.

Keywords: social and environmental reporting, institutional ownership, financial performance, Canada

JEL Classification: M41, G34

Suggested Citation

Mahoney, Lois and Roberts, Robin W., Corporate Social and Environmental Performance and Their Relation to Financial Performance and Institutional Ownership: Empirical Evidence on Canadian Firms (Undated). Available at SSRN: https://ssrn.com/abstract=305781

Lois Mahoney

University of Central Florida - Kenneth G. Dixon School of Accounting ( email )

Robin W. Roberts (Contact Author)

University of Central Florida - Kenneth G. Dixon School of Accounting ( email )

University of Central Florida
P.O. Box 161400
Orlando, FL 32816-1400
United States
407-823-2871 (Phone)
407-823-3881 (Fax)

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